Lilly's 1st-qtr 2007 earnings drop 39%

US drug major Eli Lilly said that its net income for the first quarter of 2007 dropped 39% on the like, year-ago period, to $508.7 million, or $0.47 per share, reflecting its recently-completed $2.3 billion acquisition of ICOS Corp (Marketletter February 12) and restructuring costs.

However, excluding those items, the Indianapolis-based drugmaker posted earnings of $913.0 million, or $0.84 per share, which beat the $0.79 per share consensus estimate of analysts polled by Thomson Financial. On the day Lilly announced its financial results, April 16, shares in the firm closed up 2.7% at $58.40.

During the period, sales increased 14% to $4.23 billion, boosted by revenue from newer products. Lilly noted that drugs launched this decade collectively grew 57% to $1.26 billion, and accounted for 30% of total sales versus 22% in first-quarter 2005, which analysts welcomed as it means the company is becoming less dependent on its key drug Zyprexa (olanzapine). Sales of the leading schizophrenia treatment rose 10% to $1.11 billion.